Leaves a lot to be desired: Hemant Kanoria

This is the first Budget in decades that has rightly given an implementation-based thrust to agriculture and rural segments. However, I am not enthused with the announcements on infrastructure. The proposals to introduce a Bill on dispute resolution, to form new guidelines for re-negotiation of public private partnership concession agreements and to have a new credit-rating system for infrastructure projects are steps in the right direction, but an immediate time-frame for implementation should have been articulated. The additional dividend distribution tax, trebling of securities transaction tax for options, the introduction of new cesses in certain categories are unlikely to go down well with industry. Determination of residency of foreign company on the basis of place of effective management stands deferred by one year, while general anti-avoidance rules are to be made effective from FY18. These steps might not send out the right signals to international investors. Allowing non-banking financial companies to be eligible for deduction of up to five per cent of their income in respect of provision for bad debts is a positive move, although it is still not on par with banks. Hemant Kanoria

Chairman & MD, Srei Infrastructure Finance Limited